P2P lending: Key market research findings
- The Americas dominate the market geographically
- Enhancement of inventory management drives market growth
- Key vendors – CircleBack Lending, Lending Club, Peerform, Prosper, and Upstart
Technavio’s market research analysts predict the global market for peer-to-peer lending to reach around $225 billion by 2020. The high growth rate of the market can be accredited to the enhancement of inventory management. Organizations are focusing on maintaining optimal inventory levels by setting up a system that uses various internal processes to accurately track goods and efficiently maintain an inventory. Such a system enables a company to manage vendors and customers, monitor demand patterns, track inventory performance, maintain accurate inventory counts, and ensure suppliers adhere to their commitments. During 2015, the global peer-to-peer lending market was dominated by the Americas with a market share of around 45%. The large-scale funding activity across the financial system in the region is expected to further fuel growth in the P2P lending market in the Americas during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Big data and artificial intelligence play a key role in spurring the growth of the global market. Marketplace lending helps in providing innovation so that they can create new methods of financial services and also helps in analyzing the risks involved in providing financial services to the clients. Analytics provide analysis and reporting capabilities with insightful and future-oriented actionable answers, which cannot be addressed completely by business intelligence. It performs predictive analysis such as stochastic, simulation techniques, and what-if scenarios that help to evaluate the trade-off between different strategies and tactics,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The faster access to credit that makes P2P lending easy is a key factor that is contributing to the growth of the global market. The P2P lending institutions offer risks, along with scenario analytics for different products and services with real-time pricing and capital management of multi-asset portfolios. This unique tool would provide a transparent and detailed solution to clients to buy the products and services from the online platform. This practical process of pricing the products and solutions helps manage individual portfolios and avoid firm-wide risks through consistency, automation, and transparency. For instance, specialized pricing functions produce all relevant analytics that is useful for said professionals.
The key vendors in the global P2P lending market include CircleBack Lending, Lending Club, Peerform, Prosper, and Upstart. The market is characterized by the presence of several major and small vendors and will also witness the entry of several new vendors. These new vendors or start-up companies with their innovative products will attract more users, investors, and media coverage and will post a stiff competition to the existing vendors. The competitive environment in the market is expected to intensify during the forecast period and will be mainly attributed to the rise in the use of smartphones for entering into the online space. International players will also grow inorganically by following mergers and acquisitions activities. To retain their market shares, peer to peer lending companies have the need to develop innovative technologies and also stay up-to-date with emerging technologies that could influence their product lines.
A more detailed analysis is available in the Technavio report, Global P2P Lending Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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